DIRECTV is the biggest satellite TELEVISION supplier on this planet. In a daring bid to change into more relevant, West Chester-primarily based TELEVISION-shopping network QVC will merge with the St. Petersburg, Fla.-primarily based House Buying Network to better compete against the likes of Amazon and Walmart as extra consumers use smartphones and other units to search out the best deals on-line.
Allen & Company and the legislation firm Baker Botts are advising Liberty Interactive, while Centerview Companions, Goldman Sachs and the law agency Davis Polk & Wardwell are advising a special committee of HSN’s board of administrators. Active HSN prospects hit a record 5.3 million at the finish of the primary quarter as HSN saw progress in both new-customer count and current-customer retention, Grossman mentioned.
(The remaining 30% of the parent firm’s sales is claimed by the Cornerstone enterprise , which mails 325 million catalogs yearly underneath seven different brands from Ballard Designs house decorating to the Chasing Fireflies kids’s clothes. The deal would give the combined company higher scale and improve its aggressive place, whereas permitting the corporate to reduce costs, QVC said.
“Combined, the businesses will operate five networks in the U.S., and will management residence furnishing brands resembling Ballard Designs, Frontgate and QVC’s on-line clothing seller Zulily. However then they will give customers multiple different ways to simply return products (which prices them hundreds of thousands I wager). QVC revenues had been $8.7 billion final year, CNN Money reports ; HSN had $3.5 billion in sales.
HSN is one of the few networks that may be a whole shopper vacation spotâ€”for shopping, for sharing, for gaming, for info, for leisure. Residence-procuring tv networks should not immune from the web competition. In uncommon instances, purchasing networks like HSN and QVC do pursue designers or producers demonstrating the power and dedication to provide an item of excellent high quality, which holds the promise of business viability.